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Breadcrumb

  1. Home
  2. Single Rulebook Q&A
  3. 2023_6939 Treatment of credit institutions from the UK in terms of limits to large exposures
Question ID
2023_6939
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Large exposures
Article
391
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
NA
Type of submitter
Credit institution
Subject matter
Treatment of credit institutions from the UK in terms of limits to large exposures
Question

Is it possible to consider the prudential, supervisory, and regulatory requirements applied to credit institutions located in the UK as at least equivalent to those applied in EU for the purpose of Article 391 of Regulation (EU) No 575/2013?

Background on the question

COMMISSION IMPLEMENTING DECISION (EU) 2021/1753, dated October 1, 2021, affirms the findings of assessments conducted thus far. According to this decision, the European Commission has determined that the regulatory, supervisory, and prudential arrangements in place in the following countries: Argentina, Australia, Bosnia and Herzegovina, Brazil, Canada, China, Faroe Islands, Greenland, Guernsey, Hong Kong, India, Isle of Man, Japan, Jersey, Mexico, Monaco, New Zealand, North Macedonia, Saudi Arabia, Serbia, Singapore, South Africa, South Korea, Switzerland, Turkey, and the USA, comply with a comprehensive set of operational, organizational, and supervisory standards that mirror the fundamental aspects of the European Union's prudential, supervisory, and regulatory frameworks for credit institutions. Consequently, the decision deems the prudential, supervisory, and regulatory requirements applied to credit institutions located in these countries as being at least equivalent to those applied within the European Union. This equivalence is established for the purposes of various articles, including Articles 107(4), 114(7), 115(4), 116(5), 142(2), and Article 391 of Regulation (EU) No 575/2013.

However, UK is not included in the country list. What's the correct treatment of credit institutions from the UK in terms of limits to exposure? Is it possible to consider the prudential, supervisory, and regulatory requirements applied to credit institutions located in the UK as at least equivalent to those applied in the Union for the purpose of Article 391 of Regulation (EU) No 575/2013?

Submission date
21/12/2023
Rejected publishing date
01/02/2024
Rationale for rejection

This question has been rejected because the issue it deals with is already explained or addressed in Article 391 of Regulation (EU) No 575/2013 of the European Parliament and of the Council read in conjunction with the COMMISSION DELEGATED REGULATION (EU) 2023/2779 of 6 September 2023 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards specifying the criteria for the identification of shadow banking entities referred to in Article 394(2) of Regulation (EU) No 575/2013.

For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”

Status
Rejected question

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